diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java
index 650d33012..c2d3015d9 100755
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java
@@ -2370,7 +2370,8 @@ public class Loan extends AbstractPersistable<Long> {
                     getApprovedOnDate());
         }
 
-        if (getExpectedFirstRepaymentOnDate() != null && disbursedOn.isAfter(getExpectedFirstRepaymentOnDate())) {
+        if (getExpectedFirstRepaymentOnDate() != null && disbursedOn.isAfter(getExpectedFirstRepaymentOnDate()) &&
+        		disbursedOn.toDate().equals(this.actualDisbursementDate)) {
             final String errorMessage = "submittedOnDate cannot be after the loans  expectedFirstRepaymentOnDate: "
                     + getExpectedFirstRepaymentOnDate().toString();
             throw new InvalidLoanStateTransitionException("disbursal", "cannot.be.after.expected.first.repayment.date", errorMessage,